Cyprus economy shrinks 1.3% during Q1 2020

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Cyprus’ economy contracted 1.3% of GDP in the first three months of the year which includes the COVID-19 outbreak in early March.

Seasonally adjusted GDP decreased by 3.8% in the euro area, -3.3% in the EU and by 1.3% in Cyprus during the first quarter of 2020, compared with the previous quarter, according to a flash estimate published by Eurostat.

These were the sharpest GDP declines observed since time series started in 1995, said Eurostat.

In Q4 2019, GDP had grown by 0.1% in the euro area, by 0.2% in the EU and was up 1% in Cyprus.

Compared with Q1 2019, seasonally adjusted GDP decreased 3.2% in the euro area, by 2.6% in the EU and increased by 0.8% in Cyprus in Q1 2020, after +1%, +1.3% and +3.2% respectively in the previous quarter.

These were the sharpest annual declines since Q3 2009 (-4.5% for the euro area and -4.4% for EU).

During Q1 2020, GDP in the United States decreased by 1.2% from the previous quarter (after +0.5% in Q4 2019).

Compared with the same quarter of the previous year, GDP increased by 0.3%.

Meanwhile, the number of employed decreased by 0.2% in both the euro area and the EU in Q1 2020, compared with the previous quarter.

This is the first decline in the time series since Q2 2013 for the euro area and Q1 2013 for the EU.

In the fourth quarter of 2019, employment had grown by 0.3% in both zones.